The staff report for the 2007 Article IV Consultation on the Lao People's Democratic Republic (PDR) explains economic performance. Growth is robust and increasingly reliant on large export-oriented mining and hydropower projects. The economic outlook is promising, but the outcome clearly depends on the government's policy response to the emerging resource bonanza. The current fiscal regimes for the resource sector have several sound features, but some improvements are needed to align them to best international practices.